Relations between Europe and Russia have deteriorated greatly since the Russo-Ukrainian conflict. As Russia cuts its gas supplies to Europe, the energy crisis intensifies. As a large consumer of natural gas, the EU depends on Russia for about a 40% of your gas supply. Germany's dependence on Russian gas reaches even 55%.
Roland Harings, General Director of Aurubis AG in Germany, The largest copper producer in Europe, declares the 5 of August that the company plans to minimize the use of natural gas and have an impact on customers the increase in electricity costs in the face of the energy crisis in Germany.
Besides, Aurubis is considering alternatives such as fuel Due to the shortage of natural gas supply. But the company's operations in Germany are still inevitably affected. Sources of the sector have warned that gas prices and electricity are likely to remain high in the coming years.
Harings says that Aurubis has covered about two thirds of its electricity demand this year, But it is inclined to have the increase in consumer costs in the future.
Foundations usually consume large amounts of electricity, What has left the metal producers In a difficult position during the energy crisis. Unlike zinc and aluminum, Copper producers have been less affected until now because copper consumes relatively little energy in their production process.
Nevertheless, Aurubis plants continue to consume large amounts of natural gas in the production of semi -bred products such as copper wires and steel bumps.
Harings reveals that Aurubis and the German government have discussed a topic to establish a stop in energy prices for large industrial users. It is a mechanism similar to that used in France. For example, Aluminum Dunkirk Industries France, which is the largest aluminum smelting in Europe and buys the 80% of your energy at a fixed price, It has minimized the impact of the increase in electricity prices.
It is likely that the metallurgical industry is subject to increasing pressure as consumers from all over Europe are urged to conserve energy.
Bloomberg points out that the market value in cash of the electricity necessary to produce an aluminum ton in France is approximately 8.000 Dollars. While, Aluminum prices in the London Metal Bag quote below the 2.500 dollars per ton.
Metal producers warned last month that Europe had lost about half of its zinc and aluminum casting capacity in the last year. A new rebound in electricity prices could cause more stops from winter plants.
The EU has set goals for the energy transition and carbon neutrality. Among them is the increase in the renewable energy fee in the final consumption of energy until the 40% in 2030. Nevertheless, time will be needed to create your continuous and stable supply capacity of renewable energy.